Connecticut General Statute Section 22a-483f provides the State Bond Commission the power to authorize bonds up to an aggregate $20 million to be used by the DPH to implement a public water system improvement program. This program will provide grants-in-aid, in the form of loan principal forgiveness, to certain eligible public water systems for DWSRF projects. A project which is eligible for any subsidy from the DWSRF must execute a loan for the remaining amount of principal in order to receive the grants-in-aid. This funding was first announced via Circular Letter 2014-11 at the $50 million dollar level but was subsequently by Public Act 16-4 in June 2016 to $20 million.
Eligibility criteria for the supplemental grants-in-aid follow the same eligibility criteria for DWSRF loans with the following exceptions:
Public service companies, as defined in Section 16-1 of the CGS are not eligible for grants-in-aid.
For-profit companies are not eligible for grants-in-aid.
Grants-in-aid may only be provided to eligible PWSs for eligible drinking water projects for which a DWSRF project funding agreement is executed after July 1, 2014.
In addition, projects must be consistent with the criteria outlined in the DPH’s annual DWSRF Intended Use Plan.
The DWS has developed a “Not-For-Profit Water Company Determination Form” to determine if a water company is eligible to receive this state subsidy. The form must be completed by each water company that wishes to receive a grant-in-aid under this program. A completed form is requested to be submitted with the Eligibility Application. Only one completed form is necessary per water company. The DWS may request confirmation of this status if a length of time has elapsed between the submittal of the form and award of funding (e.g. annual update).
CGS Section 22a-483f(c)(3) requires eligible PWSs to submit fiscal and asset management plans with their DWSRF application. The DWS will review these plans and determine if they are satisfactory before a PWS may receive a grant-in-aid. The following checklists outline the requirements, and must be submitted along with these plans.
Eligible PWSs that serve 10,000 or fewer persons may receive up to 50% grant-in-aid for project costs that qualify for funding through the DWSRF. Eligible public water systems that serve more than 10,000 persons may receive up to 30% grant-in aid for project costs that qualify for funding through the DWSRF.
If you have any questions, please contact a DWSRF Program representative at (860) 509-7333.